Impact of the project manager's transformational leadership, influenced by mediation of self-leadership and moderation of empowerment, on project success

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PurposeIn times of crisis and volatility, especially in the Covid-19 scenario, project organisations are facing multifaceted threats. Project organisations are inclining towards flatter organisational structures. Employees are demanding more decision-making authority due to the changing working scenario. Despite the advancement in project management, a hard skill side, project organisations are still struggling to achieve successful projects. The project manager's leadership, employee self-leadership and soft skills are presented as the solution to these aggravated problems. This article attempts to determine whether a transformational leadership style can influence project success, directly and indirectly through employee self-leadership.Design/methodology/approachThe author raises the hypothesis, supported by social cognitive theory, that transformational leadership impacts project success directly and indirectly through self-leadership. Data were collected from 289 project team members in the IT sector, and the proposed relationships were assessed through Partial least squares structural equation modelling PLS-SEM.FindingsResults show that a project manager's transformational leadership behaviour and employee self-leadership positively impact project success. Additionally, self-leadership mediates the relationship between transformational leadership and project success. Lastly, empowerment demonstrated significant moderation for self-leadership and project success, and for transformational leadership and project success.Research limitations/implicationsIn this study, one obvious methodological limitation is a cross-sectional design. Future research can be performed while adopting a longitudinal research design. Another conceptual limitation of the model is that the authors did not include all transformational leadership dimensions, which can be considered for future studies while replicating this research model. Another future front can be by examining other leadership styles. Another research limitation may be the single source data collection, a future study may be conducted by several sources for data collection to adequately test both of the leadership styles at different hierarchies and for project success.Originality/valueThe paper contributes to the literature by finding that, in crises, a project manager's transformational leadership style enhances project success. In practice, project managers are needed to adopt transformational behaviour and encourage employee self-leadership and empowerment.